PC Res 4437RESOLUTION NO. 4437
BEING A RESOLUTION OF THE PLANNING COMMISSION OF
THE CITY OF CAMPBELL APPROVING IN PART THE
APPLICANT-REQUESTED MODIFICATION (PLN2017-292)
AND APPROVING A CITY-INITIATED MODIFICATION
(PLN2018-87) TO PREVIOUSLY APPROVED CONDITIONAL
USE PERMITS UP 98-01, PLN2002-90, AND PLN2012-172 FOR
AN EXISTING RESTAURANT/BREWERY WITH GENERAL
ALCOHOL SERVICE ("LIQUOR ESTABLISHMENT"), LAl"E-
NIGHT ACTIVITIES, AND LIVE ENTERTAINMENT, ON
PROPERTY LOCATED AT 200 EAST CAMPBELL AVENUE.
After notification and public hearing, as specified by law and after presentation by the
Community Development Director, proponents and opponents, the hearing was closed.
After due consideration of all evidence presented, the Planning Commission did find as
follows with respect to file numbers PLN2017-292 and PLN2018-87:
1. The project site is located at the southwest corner of South Second Street and East
Campbell Avenue. The site is developed with a two-story commercial building
accommodating a banquet hall, personal services studio, and arestaurant/brewery
commonly known as The Campbell Brewing Company ("CBC").
2. The project site is zoned C-3 (Central Business District) and is designated with a
Central Commercial land use designation by the General Plan.
3. At its meeting of April 28, 1998, the Planning Commission adopted Resolution No.
3160 approving a Conditional Use Permit (UP 98-01) to allow establishment of a new
restaurant and microbrewery with late-night operational hours and general alcohol
service, as well as establishment of a banquet hall. In approving Resolution No. 3160,
the Planning Commission found that:
The proposed project [the restaurant/brewery and banquet hall] will aid in the enhancement and the
harmonious development of the immediate area. The establishment, maintenance, or operation of
the use will not be detrimental to the public health, safety, peace, morals, comfort, or general welfare
of persons residing or working in the neighborhood of such proposed use.
4. At its meeting of September 24, 2002, the Planning Commission adopted Resolution
No. 3457 approving a Conditional Use Permit (PLN2002-90) to allow live entertainment
in association .with the restaurant/brewery. In approving Resolution No. 3457 the
Planning Commission found that:
The establishment, maintenance, or operation of the use [the restaurant/brewery] will not be
detrimental to the public health, safety, peace, morals, comfort or general welfare of persons residing
or working in the neighborhood of such proposed use, or be detrimental or injurious to property and
improvements in the neighborhood or to the general welfare of the City.
5. At its meeting of January 6, 2015, the City Council adopted Resolution No. 11765,
approving a Live Entertainment Permit for the restaurant/brewery, pursuant to the land
use approval granted by Planning Commission Resolution No. 3457.
Planning Commission Resolution No. 4437
200 E. Campbell Avenue
PLIV2017-292 ~ Modified Conditional Use Permit
Page 2
6. The restaurant/brewery is recognized as a "restaurant, standard" with an associated
"liquor establishment" (on-sale general liquor service), "late-night activities," and "live
entertainment," as defined by Campbell Municipal Code (CMC) Section 21.72.020.8.
The brewery component of the establishment is recognized as an ancillary land use to
the restaurant determined to constitute a "microbrewery" by the Community
Development Director pursuant to CMC Section 21.02.020.F.1, which is defined as
activity authorized by Section 23357 of the California Business and Professions Code
pursuant to a "Type 23" (Small Beer Manufacture) license issued by the Department of
Alcoholic Beverage Control (ABC) that brews beer for service to the restaurant patrons
on the site of the restaurant during restaurant operations.
7. The land uses described herein that constitute the subject restaurant/brewery are
allowable in the C-3 (Central Business District) Zoning District, subject to approval of a
Conditional Use Permit.
8. On March .17, 2017, Campbell Police observed that live entertainment was occurring at
1:20 AM, beyond the 12:00 AM ending time specified by the Live Entertainment Permit.
This violation precipitated a series of events that included submittal of an applicant-
. sponsored application for a Modification (PLIV2017-292) to the previously approved
Conditional Use Permits to alter conditions of approval for live entertainment and a
City-initiated Modification/Revocation (PLN2018-87) to revise conditions of approval
pertaining to the hours of operation, live entertainment, alcohol service, and floor plan
configuration for the restaurant/brewery. The series of events is summarized follows:
March 21, 2017: In coordination with the Police Department, Planning staff meets
with CBC regarding on-going compliance with their Conditional Use Permit: Staff
reminds the owners of the importance of following their conditions and informed
them that the March 17, 2017 occurrence has been formally documented as a
verified violation.
April 13, 2017: Campbell Police follow up with CBC who confirm that live
entertainment hours have been rolled back to 12:00 AM and that a new food partner
would soon be secured.
• April 28, 2017: An attempt to secure a separate business license for the food
operation was made. Staff denied the request as it suggested an attempt to
separate the bar from the overall restaurant operation in manner inconsistent with
the Conditional Use Permit. Specifically, the business license application indicated
that the restaurant would only be open to 11:00 PM (subsequently revised to say
hours vary), meaning that the bar would be open without food service from 11:00
PM until closing.
• May 1, 2017: CBC sends a letter arguing against the City's denial of a business
license.
• May 8, 2017: "The Pit" restaurant opens within CBC without City approval.
Planning Commission Resolution No. 4437
200 E. Campbell Avenue
PLN2017-292 ~ Modified Conditional Use Permit
Page 3
• May 12, 2017: Staff meets with CBC to discuss the ongoing violations, in particular
the City's position that alcohol service must be accompanied by food service.
• May 15, 2017: Staff sends a letter memorializing the May 12, 2017 meeting.
• May 17, 2017: CBC agrees to the City's requirement to provide food service in
conjunction with alcohol service, without stipulating to the City's position.
• August 4, 2017: Staff sends a warning notice identifying several violations including
the unpermitted creation of a dance floor, construction of a platform/stage without a
building permit, and unauthorized disk-jockey (DJ) performances.
• September 15, 2017: CBC submits an application fora Modification to the
Conditional Use Permits.
• October 24, 2017: A meeting is held with CBC and staff to discuss revised
conditions of approval that have been prepared by staff in response to CBC's
Conditional Use Permit-Modification application.
• November 10, 2017: CBC provides a written response to staffs draft revised
conditions of approval.
• December 20, 2017: Staff provides response letter addressing the comments
provided by CBC's November 10, 2017 letter.
• January 18, 2018: Staff meets with CBC to discuss the revised draft conditions of
approval. CBC indicates that they may decide to withdrawal the. application,
however, .ultimately deciding to continue to work with staff.
• January-March 2018: Staff agrees to additional revisions to the draft revised
conditions of approval. CBC agrees to prepare a revised floor plan showing seating
details.
• March 9, 2018: CBC provides revised floor plan after several weeks of delay and
reminders.
• March 15, 2018: Staff provides a modified floor plan in response to the CBC floor
plan, which illustrates a combination of fixed and unfixed tables evenly spread
throughout the restaurant/brewery.
• March 21, 2018: Staff conducts a site visit to CBC to discuss the City's floor plan
concerns. At the meeting staff is introduced to a potential new restaurant operator
who would like to create his own floor plan arrangement.
• March 22, 2018: A formal Notice of Public Hearing is provided to CBC, setting an
April 10, 2018 Planning Commission public hearing.
Planning Commission Resolution No. 4437 Page 4
200 E. Campbell Avenue
PLN2017-292 ~ Modified Conditional Use Permit
9. As described in the August 4, 2017 City Warning Letter, the subject
restaurant/brewery is in violation of its Conditional Use Permits as follows:
• The restaurant/brewery is in violation of Condition of Approval No. of 1
Conditional Use Permit PLN2002-90 (PC Resolution No. 3457), which
incorporated by reference both "project plans" and a "project description," from
which the approved live entertainment was required to "substantially conform".
These approved project plans included an illustration depicting. the location and
size of the approved live entertainment area. This entertainment area was
replaced with the unpermitted construction of a new entertainment platform/stage
inconsistent with this approved location, constituting a violating Condition of
Approval No. 1.
Additionally, the project description indicates that the restaurant/brewery would
not include a designated dance floor. However, Campbell Police has observed
dancing activity within the restaurant/brewery that is comparable to a nightclub.
The removal and relocation of tables and chairs in front of the unpermitted
entertainment stage to create a dance floor without business owner correction
also constitutes a violation Condition of Approval No. 1, and fosters a nightclub
atmosphere. A nightclub is a separately identified use in the Municipal Code, and
no one has ever sought or obtained approval for such a use on this property.
• The restaurant/brewery is in violation of Conditions of Approval No. 3 and 15 of
Conditional Use Permit PLN2002-90 (PC Resolution No. 3457). Condition of
Approval No. 3 requires continued compliance with the all City standards, codes,
and ordinances, including the requirements specified by Campbell Municipal
Code Section 5.25.010 that requires-as reiterated by Condition of Approval No.
15-that a Live Entertainment Permit to be acquired and adhered to.
On March 17, 2017, the Police Department observed live entertainment occurring
past the 12:00 AM end time specified by the Live Entertainment Permit. This
occurrence constitutes a violation of Conditions of Approval No. 3 and 15.
10. Campbell Police confirmed from 2016 into 2018 a series of incidents related to the
subject restaurant/brewery's operational practices, including DUIs, fights, vandalism,
altercations, assaults, .loud music, and a capacity violation. Of the 59 incidents
documented during the reporting period, 22 were of a violent nature (i.e., battery, felony
batter, vandalism, fighting, resisting arrest, and assault with a deadly weapon), the
majority of which (14) occurred after midnight. This summary demonstrates a continued
pattern of activity that has become injurious to peace officers, patrons, and nearby
residents. The overconsumption of alcohol resulting in repeated DUIs and intoxicated
persons, as well as a variety of other criminal violations occurring in the later hours
demonstrate that business hours beyond 12:00 AM is detrimental to the public, health,
safety, and welfare.
Planning Commission Resolution No. 4437
200 E. Campbell Avenue
PLIV2017-292 ~ Modified Conditional Use Permit
Page 5
11.The City Council adopted the 'Downtown Alcohol Beverage Policy', consistent with the
goals and strategies of the Campbell General Plan and Downtown Development Plan.
The Policy is intended to balance the health and safety of the community while still
maintaining the commercial viability of the downtown in which restaurants have an
essential role.
12. Conformance to the provisions of the Downtown Alcohol Beverage Policy is the basis
by which the City reviews new and modified applications for alcohol beverage service.
The Policy sets forth limitations to the hours of operation, amount of bar area seating,
and alcohol beverage service that are necessary to protect the public health, safety and
welfare. The Downtown Alcohol Beverage Policy strongly recommends that Conditional
Use Permits for establishments for on-site consumption of alcohol beverages be limited
to a closing time of no later than 12:00 AM.
13.The over-concentration of late night alcohol serving establishments within a compact
downtown district can create a cumulative impact that overwhelms the area creating an
undesirable result such as public intoxication, vandalism, and disorderly conduct.
14. The Downtown Alcohol Beverage Policy provides that all Conditional Use Permits
issued to establishments for alcoholic beverage service on-site are subject to Sections
21.68.020, 21.68.030 and 21.68.040 of the Campbell Municipal Code authorizing the
appropriate decision making body to modify or revoke a Conditional Use Permit if it is
determined that the sale of alcohol has become a nuisance to the City's public health,
safety or welfare.
Based upon the foregoing findings of fact, the Planning Commission further finds and
concludes that:
1. Circumstances under which the permit was granted have been changed by the
applicant to a degree that one or more of the findings contained in the original permit
can no longer be made in a positive manner, and the public convenience, health,
interest, safety, or welfare require modification in that:
A. The project [the restaurant/brewery and banquet hall] has not aided in the
enhancement and the harmonious development of the immediate area. The
establishment, maintenance, or operation of the use is now detrimental to the
public health, safety, peace, morals, comfort, and general welfare of persons
residing or working in the neighborhood of the use.
B. The establishment, maintenance, or operation of the use [the
restaurant/brewery] is now detrimental to the public health; safety, peace,
morals, comfort and general welfare of persons residing or working in the
neighborhood of such proposed use, and be detrimental or injurious to property
and improvements in the neighborhood or to the general welfare of the City.
Planning Commission Resolution No. 4437
200 E. Campbell Avenue
PLN2017-292 ~ Modified Conditional Use Permit
Page 6
2. The improvement or use allowed by the permit has become detrimental to the public
health, safety, and welfare or the manner of operation constitutes and is creating a
nuisance, as determined by the decision-making body.
3. One or more of the conditions of the permit have not been substantially fulfilled or have
been violated.
4. A Conditional Use Permit may be approved, with or without conditions, only if the
Planning Commission (or the City Council, upon appeal) makes certain findings
provided in CMC Section 21.46.040. In approving a Conditional Use Permit application,
the Planning Commission (or City Council, upon appeal) may impose reasonable and
necessary specific design, locational, and operational conditions relating to both on-
and off-site improvements, which are intended to ensure compliance with the findings.
5. In order to make the required findings and protect the public health, safety, and welfare,
as well as the integrity and character of the city, the Planning Commission (or the City
Council, upon appeal) has placed appropriate conditions on the project as provided
herein.
6. As conditioned in this Resolution, the modified use is compatible with the surrounding
development and uses which include restaurant uses to the north and the south and
commercial uses to the east and west.
7. As conditioned in this Resolution, the modified use is allowed within the C-3 zoning
district with Conditional Use Permit approval, and complies with all other applicable
provisions of the Zoning Code and the Campbell Municipal Code.
8. As conditioned in this Resolution, the existing restaurant/brewery with modified late-
night activities, live entertainment, and on-sale general liquor service (liquor
establishment) is consistent with the Central Commercial General Plan land use
designation and the C-3 (Central Business District) Zoning District.
9. As conditioned in this Resolution, the site is adequate in terms of size and shape to
accommodate the existing building, parking, and other existing improvements in order
to integrate the use with other uses in the surrounding area.
10.As conditioned in this Resolution, the site is adequately served by streets of sufficient
capacity to carry the kind and quantity of traffic the use would be expected to generate.
11.As conditioned in this Resolution, the modifications to the Conditional Use Permits will
not increase parking demand greater than the use, as currently conditioned.
12. As conditioned in this Resolution, the design, location, size, and operating
characteristics of the modified use are compatible with the existing and future land uses
on-site and in the vicinity of the subject property.
13. As conditioned in this Resolution, the establishment, maintenance, or operation of the
modified use at the existing location will not be detrimental to the comfort, health,
Planning Commission Resolution No. 4437
200 E. Campbell Avenue
PLN2017-292 ~ Modified Conditional Use Permit
Page 7
morals, peace, safety, or general welfare of persons residing or working in the
neighborhood of the proposed use, or be detrimental or injurious to property and
improvements in the neighborhood or to the general welfare of the city.
14.As conditioned in this Resolution, the modified establishment at this location will not
result in an over concentration of similar uses in the surrounding area.
15.As conditioned in this Resolution, the modified use will not create a nuisance due to
litter, noise, traffic, vandalism, or other factors.
16.As conditioned in this Resolution, the modified use will not significantly increase the
demand on city services.
17.As conditioned in this Resolution, the modified restaurant use is consistent with the
guidelines of the Downtown Development Plan in that it supports a use in the
downtown that complements other retail activities in the downtown.
18.The Police Department has reviewed the modifications and is supportive of the
modifications as conditioned.
19. No substantial evidence has been presented which shows that the use, as currently
presented and subject to the required Conditions of Approval, will have a significant
adverse impact on the environment.
20. This project is Categorically Exempt under Section 15301, Class 1 of the California
Environmental Quality Act (CEQA) pertaining to the operation and permitting of an
existing private structure involving negligible or no expansion of use beyond that
existing at the time of the lead agency's determination.
21. There is a reasonable relationship and a rough proportionality between the Conditions
of Approval and the impacts of the project.
THEREFORE, BE IT RESOLVED that the Planning Commission approves, in part, an
applicant-requested Modification (PLN2017-292) subject to the attached Revised
Conditions of Approval (attached Exhibit A) and approves aCity-Initiated Modification
(PLN2018-87) to previously approved Conditional Use Permits UP 98-01, PLN2002-90,
and PLN2012-172 for an existing restaurant/brewery with general alcohol service ("liquor
establishment"), late-night activities, and live entertainment, on property located at 200
East Campbell Avenue, subject to the attached Revised Conditions of Approval (attached
Exhibit A).
Planning Commission Resolution No. 4437
200 E..Campbell Avenue
PLN2017-292 ~ Modified Conditional Use Permit
Page 8
PASSED AND ADOPTED this 10th day of April, 2018, by the following roll call vote:
AYES: Commissioners: Rivlin, Rich, Ostrowski, and Ching
NOES: Commissioners: Krey and Hernandez
ABSENT: Commissioners: Dodd
` ABSTAIN: Commissioners: A, - ~
s~•" . - l
APPROVED: ~ ,J1 - ~ ~ -
~~ ~ ~ Michael Rich, Chair
ATTEST:
Paul ermoyan, Secretary